A Dangerous Game.

Incorporating 1 trillion parameters.

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1. A surge in prices for the raw materials that power manufacturing and transportation shows investors betting on a prolonged expansion—and a potential rebound in inflation. An index of global commodities prices, the S&P GSCI, has advanced 12% this year, outpacing the S&P 500’s 9.1% climb. Copper and oil have gained more than 10% and 17%, respectively. Even gold is posting fresh records, rising 13% to $2,332 a troy ounce. The rally is rooted in expectations that economic growth will increase demand from the U.S. and China, analysts said. A pair of reports last week showing recoveries in both countries’ manufacturing sectors helped spark a fresh wave of buying. (Source: wsj.com)

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2. Oil markets are set to become “extremely tight” in the second half of this year, according to hedge fund giant Citadel, as Opec+’s control of the market allows it to keep prices high. Sebastian Barrack, the firm’s head of commodities, told the FT’s Commodities Summit in Lausanne on Monday that the cartel has “definitely regained control” of the oil market. That means that the volumes that its member nations supply, and the timing of that supply, “will define where prices go in the next 12 months”, he said. Citadel was last year named the most successful hedge fund of all time and has made large profits trading commodities. (Source: ft.com)

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